Do I pay extra tax if I am not a Canadian citizen or permanent resident?
Yes. Ontario's non-resident speculation tax applies province-wide to foreign nationals, foreign corporations and taxable trustees, at twenty-five percent of the purchase price, on top of land transfer tax and due in cash on closing.
This is the largest single tax in Ontario residential real estate and it is charged on the whole price, not on a band of it. It applies across the province, not only in the Toronto area.
There are also federal restrictions that have periodically prohibited certain non-Canadians from purchasing residential property outright, with exceptions. Whether they apply to you depends on your specific status and on the rules in force on your closing date.
Rebates and exemptions exist for some categories, including certain permanent residence paths, and where they apply they are claimed after closing. That distinction is critical for cash planning: you pay the tax on closing day and seek the rebate later.
Get advice on your specific status from a real estate lawyer before you sign anything, not after. The cost of being wrong here is a quarter of the purchase price.
Answer it with your own numbers
You will need: purchase price, residency status, municipality.
Include the tax in your cash to closeAlso asked as
- What is NRST?
- Can foreigners buy property in Ontario?
Next questions
What is land transfer tax and how much will I pay?
A provincial tax on the purchase price, charged at marginal rates that rise with price and paid by your lawyer on registration. Inside the City of Toronto a second municipal tax applies on top, which at ordinary prices is close to the provincial amount and at high prices is more.
Ontario
How much cash do I actually need on closing day?
Your down payment plus closing costs, which this app's own estimate puts at roughly one and a half to three percent of the price outside Toronto and above four percent inside it, because Toronto charges a second land transfer tax.
Ontario